Office Sector Set to Surge Ahead

Offices are enjoying strong demand
Australia-wide, Office vacancies are falling.

And Melbourne leads the way at 5.5%; with Perth close behind, at 6.6% — due to the rebound in mining activity.

Offices set to SurgeAccording to the Property Council of Australia, these vacancy levels will reach 4.9% and 6.1% respectively, by January of next year.

With zero space coming onto the market in Melbourne, landlords will be well-placed to renegotiate far more attractive deals, as leases fall due for renewal.

Whereas, Brisbane’s current vacancy level of 9.2% is expected to blow out to 9.8% — making it very much a tenants’ market, as far as lease negotiations are concerned.

While rents are rising in most capital cities, selling yields are set to fall as well. This double benefit will be reflected in strong capital growth over the next four years.

Bottom Line: Shrewd investors are currently ranking their preferred Commercial sectors as follows …

  1. Office (both suburban and CBD)
  2. Industrial
  3. Retail

Now is the time for you to start re-balancing your portfolio — and ride the growth wave through to 2018.

Sentiment is Strong … Despite the Economy

Looking Up

Looking Up

These graphs are painting a very encouraging picture.

As you can see, the Westpac-Melbourne Institute consumer sentiment index increased strongly by 9.5% for June.

And that means it has now leapt by some 23% since May — the largest 2-month increase for over 30 years.

First-home buyers have also been active, accounting for nearly 30% of all loans during May.

And this overall level of confidence follows an increase in retail sales, for three months in a row.
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Melbourne Offices: Alive and Well

Even though things may be slowing in Queensland and over in the West … the Melbourne CBD Office market seems to be travelling quite well.
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